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Edmonton became the first city in Canada to pass an Uber-friendly bylaw Wednesday, leaving the California-based company scrambling to get provincially-approved insurance before a March 1st deadline.

“I’m optimistic on the insurance front and quite frankly, we’re going to be doing everything we can to be in compliance by March 1st,” said Uber’s general manager for Alberta, Ramit Kar.

He wouldn’t say what will happen if they don’t.

Alberta’s Superintendent of Insurance ruled last July that Uber’s existing policy does not adequately cover consumers. Since then, at least two companies have said they are working on policies specific to ride-sharing. None have been approved so far.

Uber can’t get a license under the new bylaw without provincially-approved insurance, and fines jump to $5,000 per driver if anyone drives without that.

Edmonton officials are hiring additional bylaw officers to ensure effective enforcement and say the the new bylaw will stand up in court if they’re forced to seek an injunction.

Despite repeated attempts from several councillors, the bylaw contains only a token minimum fare of $3.25 per ride. Council will revisit that in six months, sooner if administration sees anything they judge to be predatory pricing. The bylaw is structured such that higher minimum or a maximum fare could be implemented as soon as the following council meeting.

"I don't think we're throwing our cab drivers to the wolves,” said Coun. Scott McKeen, supporting the new bylaw. The taxi industry will be the only ones allowed to hail a cab on the street or by phone using the regulated rate.

"Technology can be so disruptive. I come from an industry where entire work groups disappeared,” said the former newspaper columnist. "I hope (taxi drivers) can compete like crazy against this outside entity that has shaken up our world. But that's what technology does."

Uber started operating its UberX service in Edmonton in December 2014. They use an app to link private individuals and their personal vehicles with paying customers for a rate that about 30 per cent less than the regulated taxi rate.

Edmonton tried and failed to shut them down with a court injunction. They’ve since ticketed at least 70 drivers under the old bylaw but those tickets are still being fought in court.

Uber officials celebrated the vote. “This is a great day for Edmonton. The leadership this city has shown to put forth Canada’s first progressive ridesharing regulations is a great thing,” said Kar, hoping other jurisdictions will follow.

Most taxi drivers left quietly before the final vote.

“How the taxi driver and owner will survive in this industry, we have no idea,” said Dawinder Deo, president of the Edmonton Taxi Association, speaking to drivers when the day’s outcome was obvious.

As Advertised in the Edmonton SUN

Edmonton becomes the first city in Canada to pass an Uber-friendly bylaw

Members of the public will be allowed back into council chambers when the Uber-debate reconvenes Wednesday afternoon.

But any disturbance, like the shouting that ground council to a halt Tuesday, will lead to a lock down. "If you do get asked to clear chambers, please do so as quickly as possible," said a memo sent to media from corporate communications Wednesday morning.

Council was forced to recess for about an hour Tuesday after roughly 150 taxi drivers rose to their feet, shouting, and refused to leave chambers. All members of the public were banned from the room, except registered media, when council reconvened. Coun. Michael Walters said city lawyers reviewed the Municipal Government Act to determine the meeting could still take place if the public was included via the online feed and media were included in the room.